Lifetime Income
KiwiSaver has fundamentally improved the retirement options for all New Zealanders. 500,000 of us will reach 65 over the next 15 years and we will do so with savings of at least $36 billion.
As New Zealanders continue to accumulate substantial amounts of capital, NZIG is developing products and services that give retirees new choices in how they use their money and innovative options to protect their capital, enhance returns and provide regular income to supplement their New Zealand Super.
There is sound international precedent for such products a nd services, particularly in America and Japan where there has been considerable product development for retirees. We have also established strong links with international industry associations representing retirement income product providers.
Our goal with Income for Life is to deliver a fixed level of income (5%) for life amounting to at least $100 per week for every $100,000 of capital invested. The capital is available to the investor at all times, so it can be drawn on if required for life's unforeseen expenses, and retirees can cancel the contract if they are not satisfied with minimal penalties.
Managing investment risk
Ralph Stewart's NZ Income Group is using the Managed Risk Investing solution developed by international firm Milliman. In this video Milliman introduces the concept. [WATCH HERE]
MORE»The birth of the Retirement Income Group
New Zealand is about to launch its first variable annuity with guaranteed lifetime withdrawal benefits. The product design is mindful of the lessons from the financial crisis in the US, Europe and Japan.
MORE»Too many Kiwis blowing KiwiSaver payouts
A survey for the retirement commission found more than a third of KiwiSavers are withdrawing their money, with 61% of people spending some of it on a holiday, 37% on home improvements or housing and 32% on a boat or new car.
MORE»KiwiSaver belongs to the KiwiSavers
Half a million KiwiSaver members will have access to over $36 billion of accumulated savings over the next 15 years. Research by New Zealand Income Guarantee Limited (NZIG) in conjunction with actuarial consultants Melville Jessup Weaver (WJ) forecasts how individual KiwiSaver accounts will grow over the next 15 years.
MORE»Warren Buffet buys annuities
Warren Buffett's Berkshire Hathaway Inc has recently acquired the Hartford Financial Services Group, U.K variable annuity business, having recently provided reinsurance to Cigna in the US for two of their old variable annuity businesses.
MORE»New-look annuity type product explained
Ralph Stewart outlines his plans for NZ Income Guarantee.
MORE»Why New Zealand needs annuities
Susan St John outlines to a Financial Services Council conference why New Zealand needs a good annuities market to help people spend their KiwiSaver.
MORE»Why we are exiting annuities: Milton Jennings
Fidelity Life chief executive Milton Jennings outlines the company's experiences with annuities products in New Zealand.
MORE»Retirees are living longer, creating a new star financial product
The push for guaranteed lifetime income has turned a former wallflower insurance product into a popular choice.
MORE»The role of annuities in the New Zealand retirement incomes policy mix
Converting assets to income in an orderly fashion will become an increasingly important issue for the ageing populations and economies of many nations.
MORE»PAPER: Finding real solutions for New Zealand retirees
Submission 2013 Review of Retirement Income Policy – New Zealand Income Guarantee – Finding Real Solutions for New Zealand Retirees
MORE»Variable Annuities – An Analysis of Financial Stability
The aim of this paper is to elaborate on the characteristics and management of variable annuities and to evaluate how variable annuities should be considered in the discussion on systemic risk in the insurance industry.
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